Safe and Sound

KANSAS TEACHERS COMMUNITY

Pittsburg, KS
5
Star Rating
Pittsburg, KS-based KANSAS TEACHERS COMMUNITY is an NCUA-insured credit union started in 1949. As of December 31, 2017, the credit union held assets of $92.0 million.

Thanks to the work of 30 full-time employees, the credit union currently holds loans and leases worth $69.0 million. Its 12,438 members currently have $79.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KANSAS TEACHERS COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is useful. It acts as a buffer against losses and provides protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, more capital is better.

KANSAS TEACHERS COMMUNITY scored above the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

KANSAS TEACHERS COMMUNITY had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

KANSAS TEACHERS COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

KANSAS TEACHERS COMMUNITY beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

KANSAS TEACHERS COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's doing better than its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.